Half of the year has passed, and the smartphone wars continue to rage. While we anxiously speculate on how the three new, affordable Nokia S40 mobile phones are going to affect the global electronics market, Apple might surprise us with a smaller, more affordable iPhone to heat up the battle for market share.
In February 2011 Apple was said to be working on what will be a mini-iPhone, though very few Apple employees knew the details of the project or had seen the prototype. Despite there being no official announcement, it was said that the expected, less expensive iPhone could be ready to face the world by midyear -- if not delayed, as happened to the white iPhone.
The reason for the lower price is due to the fact that the smaller iPhone would use chips and displays of similar quality to the latest iPhone 4, but not any of the new developments, upgrades, and faster chips that Apple is going to use in the next iPhone to be launched in September this year.
Reports say this new mini-iPhone would be targeted at Europe and some developing markets where Nokia's phones and Google’s Android mobile phones have a good share of the market pie. At a reported price of $200 and no obligation to sign a two-year service contract this smaller iPhone would be in a good position to win the race or, at least, to get closer to its competitors in developing and emerging markets.
"Instead of targeting 25 percent of the global mobile phone market, Apple would be going after 100 percent," says Charlie Wolf, an analyst at Needham & Co. in New York, who has a Buy rating on Apple shares. That sounds to me like a real plan for world domination. My bet is that if Apple makes the less expensive iPhone dream come true, it will have a very good shot at conquering the mobile phone world. It will at least advance its goal of 100 million iPhone users by the end of 2011.
Meanwhile, according to Canalys's January 2011 report, Google's Android was the leading platform by the fourth quarter of 2010 in the global smartphone market with a 32.9 percent share. Nokia ranked second with 30.6 percent, while Apple had 16 percent.
If Apple moves ahead with the mini-iPhone we will witness a tough and very interesting battle for leadership in the smartphone market, but it will be quite a long time before any of the leading mobile phone warriors can declare absolute supremacy -- if that ever happens.
@Susan, so you're saying that you think the iPod Nano was kind of a gateway drug, serving as a way to get users hooked and getting them to come back for a bigger, more expensive high?
That'd be a pretty funny theory... if it wasn't kinda true! I agree that's exactly what happened in a lot of cases.
So this makes Apple either a super-villain, a drug dealer, or a magician. Perhaps a combination of all three...
I agree with you on that. Apple iphone are still expensive for most developing countries.The best of her products we have in circulation in most of these countries are the Nano Ipods
"he strive to improve and take over more market share is what keeps the engine churning.. or causes your downfall." Yes, pocharles, the key to success rather than going bust is knowing where the line between the two is.
". . . but then again, I think they do realize that they've got to do something if they want to capture market share outside of the gadget-obsessed early adopter types."
DennisQ,
Apple will always have the gadget-obsessed market eating on its hand. It is wise to broaden the horizon and think of expansion in a different arena. The iPod nano brought Apple a good slice of new consumers. Once people try the flavor of something they do like, most likely they are going to want more.
How many people started buying an iPod nano and upgraded to an iPod or even anothe Apple device? Let's not forget that Apple casts some kind of spell on its products to make them irresistible once they are touched. :D
$200 is still a pretty steep price for a handset in many countries where Apple is trying to knock out competitors like Samsung and Nokia. Apple will be #1 when it comes to volume of sales, but you can't compare the Iphone to Android because they’re not on a level field. Apple's OS is for the Iphone only, while the Android system is free for any handset maker to use. So as a system Android will be on top because you have multiple companies using the operating system while Apple is the only one using Apple OS.
For being the first Apple's move to create a device for a lower price $200 doesn't sound too bad and it's not too distant from the price range of the competitors. Many consumers who would prefer to have an iPhone simply choose a different device because the iPhone price is too high for them.
International regulations should prompt the supply chain to reconsider product design and to develop a competitive strategy for the benefit of the planet.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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